Volatile Pork Prices Predicted for 2013

Feb 04, 2013

Rabobank Report: Higher Feed Costs Weakens Global Pork Price Expectations

Rabobank released its pork quarterly Q1, noting that while global pork prices starting off strong in 2013, it anticipated that there will be a weakening in prices in late Q1 and into Q2. The key factor for this trend is pressured coupled with slowing growth in global production levels.

The report outlines some of the key factors believed to influence pork prices for this year including – looking at the European production levels given the new animal welfare regulations, China’s demands for imports, and signs if US hog production will expand.

“Despite the higher feed input costs, the US swine breeding herd has modestly expanded and large scale farming continues to develop at a rapid pace in China, Russia and Brazil. There seems to be limited opportunity for a significant increase in pork prices, given this expansion. Chinese hog supplies appear to be sufficient, but their economy is recovering which could stimulate demand growth,” said David Nelson, Rabobank Analyst.

Overall, Rabobank predicts that global pork prices will be lower than previously forecasted largely due to higher feed costs and herd liquidation – which is happening in the U.S.

Video: Season 6, Episode 12: Veterinarians’ Perspectives on Managing Swine Herd Health Across All Phases

Identifying challenges in swine production and turning them into solutions through research and team development is the focus of this episode. Dr. Christine Mainquist-Whigham of Pillen Family Farms and DNA Genetics shares insights on herd health, biosecurity and trial work to improve pig performance. She also discusses her team’s research philosophy, how they evaluate rate of investment and how they gather feedback from employees to address challenges and maintain herd health across all phases of production. Dr. Carlos Roudergue of Country View Family Farms discusses the growing complexity of swine production, especially as technology increases and employee interaction decreases. He also shares how their workforce is shifting toward more specialized roles to support herd health and efficiency.